Understanding Growth and Poverty :
Theory, Policy, and Empirics

This volume is an introduction to the
theories and policies that affect economic growth and
poverty. It is a compilation of lecture notes used in
face-to-face and e-learning courses presented by the World
Bank Institute's (WBI) Poverty Program during 2004-08.
The volume is divided into three parts. Part one discusses
basic concepts and measurement issues pertaining to poverty,
national income, and economic growth. Part two deals with
the macroeconomic policies that are critical for economic
growth in the short term. It covers government enforced
fiscal and exchange-rate policies and the roles of financial
institutions, development assistance (or aid), debt relief,
and trade policies. Part three covers the structural and
sectoral policies that affect longer-term economic growth
and poverty reduction. To underscore the impact of good
governance and effective service delivery in growth and
poverty reduction, separate chapters are devoted to
institutional and technological development, education,
health, labor, and land. The volume ends with a chapter that
summarizes knowledge of growth theory, reviews the process
of growth in 13 successful countries, and draws out
implications for other developing countries. The authors
hope that this chapter may be of help to policy makers in
identifying the constraints to economic growth and
development that may be unique to each country.